SUSTAINING LEAN JOURNEYTHROUGH MINI COMPANY

September 25th, 2020

PT Hanes Supply Chain Indonesia

Mini Company - Webinar Series

Improvement Through People 2

PQM’s main areas of specialization are:

• Productivity & Quality Management

• Human Capital Development

• Service Excellence

About Us

PQM Consultants is a consulting, training, and research institution

specializing in productivity and quality improvement through people.

Founded in 1987, PQM Consultants has been working together with our

clients from various industries in aligning their people and processes to

compete through high speed, excellent quality and low cost.

We strongly believe that the key to our success is our total

commitment in delivering value to our clients, based on integrity,

honesty and openness

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Jarot AnorogoPrincipal Consultant at PQM Consultants

• Industrial Engineering background and Certified Supply Chain Professional (CSCP) from ASCM-APICS

• Assist and help clients through building sustainable business growth in productivity and quality improvement area

• Specialization of LEAN implementation in various industries

Moderator

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Ground Rules

Q&A

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How to use Q&A Feature:

Please Write in Q&A Feature:

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Webinar Agenda

Session Time

Opening

Sharing Session

Q&A

Closing & Feedback

09.30 - 09.35 WIB

09.35 - 10.30 WIB

10.30 - 10.55 WIB

10.55 - 11.00 WIB

Improvement Through People

Meet Our Speaker

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Speaker

2001

PT. Sandang Mutiara Cemerlang

Industrial Engineer

2002

PT. Ichikoh Indonesia

Quality Assurance Engineer

2003-2006

Bogart Lingerie

IE Manager

China

2007-2015

Pacific Brands Indonesia

IE, Costing & Lean Manager

2016-Current

Hanes Supply Chain Indonesia

Regional Engineering & Lean Value Stream Manager

DEVY YUNITA RAHMI

nitadevy@gmail.com

SUSTAINING LEAN JOURNEYTHROUGH MINI COMPANY

September 25th, 2020

PT Hanes Supply Chain Indonesia

Mini Company - Webinar Series

Improvement Through People 10

WHO ARE WE?

HANES SUPPLY CHAIN INDONESIA Manufacturer of Intimate Apparel

Location Jl. Jababeka XIIB Block W No.39 Cikarang

Established on March 02, 1998 – internal manufacturing of Hanes Brands Inc.Product Brassieres, Ladies underwear, Men’s underwearCapacity 3million Bras & 10million Briefs / year

Brands Bonds, Berlei, Champion, BNT, Jockey, Hestia, Target

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OUR BONDS STORES

AROUND THE WORLD

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WHY LEAN?Facing our challenges …

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LEAN AS COMPANY STRATEGY

Source: Jeffrey Liker

• Continual organization

• See for yourself

• Make decisions

• Grow Leaders

• Respect, develop & challenge your people

• Respect, develop & challenge your suppliers

• Create process “flow”

• Use Pull Systems

• Level out workload

• Jidoka (Stop the line)

• Standardized Tasks

• Use visual Control

• Use only tested

technology

• Management Decisions also based on

a long-term philosophy

4Ps Management Principles

of The Toyota Way

PROBLEM

SOLVING

PEOPLE and PARTNERS

PROCESS

PHILOSOPHY

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OUR LEAN JOURNEY

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WHAT WE LEARNED

FROM OUR LEAN JOURNEY

Many companies working on Lean focus on the Hardware

(equipment) & Business Processes/tools to expose the

problems.

• Less than 5% of companies starting Lean sustain it in the

long term.

• According to Mike Hoseus (Author of Lean Culture), the

3rd leg of the stool, ‘Humanware’ is often missed.

“Visitors to a Toyota Plant can see the Visual boards, layouts

and the equipment. However they can’t see what/how the employees think”

Lean is a System for People Development

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THE FUNDAMENTALS

OF PEOPLE MOTIVATION

Reference: 2013,

Human Synergistics Conference,

Shaun McCarthy

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KEY SUCCESS OF LEAN (1)

Combining Hoshin Kanri (Strategy Deployment), Cultural Building (Constructive Leadership),

Mini Company & Visual KPI as Key success of LEAN implementation

Culture of Constructive

LeadershipHoshin Kanri Mini Company

True North, Purpose,

Vision, Goals

Respect for Others,

Teamwork

Empowerment,

Problem Made Visible

& Resolved

$

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Which Way are We Going,

and How?Leadership, ownership,

vision, tools, …

Source:

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KEY SUCCESS OF LEAN (2)

[1] Hoshin Kanri = True North = Direction of Management

MINI COMPANY

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Hoshin Kanri as Strategic Direction

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Leaders becoming Coaches• Behavioural: Socratic style: Open questions, lack of anger & generally demonstrating

constructive cross functional behaviours.

• Avoiding the use of blame, anywhere.

• Building ownership, trusting subordinates with tasks / projects.

• Beginning to snowball constructive behaviours down.

• Learning to understand the ‘current condition’ through deep Gemba activities.

• Working towards becoming expert problem solvers

[2] Culture of Constructive Leadership

KEY SUCCESS OF LEAN (3)

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Do as I say...How can I help?

Just tell me

what to doHere are

my suggestions

How can we manage …

...without managing?

What do you

think?

Making People: Full Utilization of Potential

[2] Culture of Constructive Leadership

Source:

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[3] Mini Company

KEY SUCCESS OF LEAN (4)

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What is Mini Company Concept ?

• A way to practice Costumer orientation by involving all employees.

• Everybody is a president of his or her area of responsibility.

• Every “unit” or “department” is equivalent to a Mini company.

• People are owners and run such mini company to accomplish each mission.

Basic of Mini Company

• Self management: People develop a sense of ownership

• Glass-wall management : Making management process visible to everybody (Relevant key management information is shared with people on the shopfloor so that everybody

understand the situation)

• Involvement of ALL employees : People support what they help to create

• Customer supplier relationship : Check and balance mechanism to assure customer orientation while promoting self management

Mini Company [1]

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Mini Company [2]

Framework of Mini Company

Every one of us, as president of our particular area of responsibility needs to generate profit

therefore regardless of rank in the organization, every person should understand what he or

she accountable for and how performance of his or her operation is reported.

Furthermore, on effective reporting mechanism should allow us to see the relationship between the mini company’s contribution and the overall company’s performance.

Since each individual is president of his or her area responsibility, then he or she with the

other mini company member should manage his or her own mini company. Which means

than each mini company should self check or self inspect its own work. And improvement is part of each mini company responsibility as well.

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Mini Company [3]

How to create Mini Company

• Name of the Mini Company• Mission statement

• Company profile : Name of employee, Skills of employee, Costumer-Supplier Relationship• Make customer satisfaction the number one priority

• Scoreboard – a board to monitor the KPI progress and achievement• Daily meetings to discuss problems and opportunities

• Skill development through training plan

• Share accomplishment

• Report progress to Bankers/Investors and peers through departmental or cross functional team

• Use Mini company KPI board and follow PDCA cycle of continuous improvement

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Mini Company [3]

Example of Production’s Mini Company Structure

Structure of mini company in production as viewed from different job responsibility

Packing

warehouse

Trimstore,

Cutting

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Mini Company [4]

Internal Supplier-Customer Relationship

Source:

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Mini Company [5]

Organization of a Mini-Company Meeting Area

It’s important, to make

everything visible !

Source:

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Mini Company [6]

Source:

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Mini Company [7]

Attending & Late Comers5 S Audit Result & Injury

Skill Matrix Chart

Daily Output & Balancing chart

Why need Visual Management?

o Aligning shopfloor with Hoshin goals/objectives.

o Visual boards are used to visually demonstrating :

- The management condition of the shopfloor

- Alignment daily activities to Hoshin targets

- Exposes gaps between target and actuals

provide the starting point of the Lean

improvement cycle (PDCA)

Quality – PQV Report

Deviation – Problem Solving

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Mini Company [8]

Why need Daily Meeting?

o The daily meeting promoting two-way communication, creating the environment to :

- Address abnormal condition- Develops Supervisors into problem solvers & junior

managers

- Identifies where management support is

required.- Develop team member and identify potential

talent to be a leader

Mini Company Live Board – Identify the Gaps,

to drive Problem Solving

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Mini Company [9]

Production Sewing Line Mini Company

Each Supervisors become the president, all operators / subordinates become engaged members.

Daily Morning Meeting Mini Company (15mins before start working)

o Led by : Rotate operator mostly Examiner and Packing opro Attended by : Supervisor, PQV, Mechanic, Operators

o Meeting Agenda :

- Greeting

- Discuss unachieved KPI from previous day

- Follow up previous action

- Improvement ideas from the operator or kaizen in progress

- Pray

- Yell yell team together

Mini Companies – Developing

Self Managed & Engaged Teams

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Mini Company [10]

Production Sewing Line Mini Company – KPI Achievement

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Mini Company [11]

Sample line has twice a day Daily meeting- Morning meeting with cross

function Customer-supplier relations

- Afternoon meeting with internal sample mini company

Developing

Self Managed &

Engaged Teams

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Mini Company [12]

Mechanic’s Mini Company

called Mechanic United

Mechanic Dept has Daily Meeting after lunch break for internal Mechanic’s Mini company.

And each mechanic also attending the Sewing

Line’s Mini Company morning meeting

Developing

Self Managed &

Engaged Teams

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Mini Company [13]

Mechanic’s

Mini Company

called

Mechanic United

• Mechanic has high contribution for the impact to Production Sewing

Efficiency through their KPI to reduce downtime.

• They create mini company to focus on the downtime reduction to

improve Production Sewing Efficiency that will boost company main

KPI on Factory Efficiency.

• Mini Company Name: Mechanic United

• President (CEO): Agus Kurnia

• KPI Measures:

• Down Time minutes

• Breakdown Occurrences

• Repeat Repair Occurrences

• Response Time in 5 mins

• Style Change Down Time

• Daily meeting at 1:30 PM with all MU members discuss unachieved KPI and each team member share resolved problem solving for

other learning or escalate unresolved problem solving.

MECHANIC UNITED

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Mini Company [14]

Purchasing’s Mini Company

called Pioneer Excellent & Shine

Pioneer Excellent Shine

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Mini Company [15]

One of our Non-production Mini Company is Purchasing Department

Purchasing Dept has aggressive target on their main KPI on LT reduction, RM inventory reduction and

generate RM reduction improvement with resourcing local supplier or negotiate price with Supplier. Since

we have about hundreds of RM item to look after and Raw Material build up 65-70% of our garment cost

so Purchasing Team build 3 mini companies on our main RM category.

Mini Company/Team: “Excellent”President/Team Leader : Septi TanakaMission : To achieve LT reduction on trim elastic with localsourcing and best quality

KPI Measures:• LT reduction• Inventory reduction• RM cost reduction

• RM ETA Accuracy• 1st Bulk Pass rate• Kaizen (improvement initiatives)

Mini Compay/Team : “Shine”

President/CEO : Suharni NingsihMission : To achieve LT reduction on fabric withlocal sourcing with best delivery

KPI Measures:• LT reduction• Inventory reduction• RM cost reduction• RM ETA Accuracy1st Bulk Pass rate• Kaizen (improvement initiatives)

ExcellentShine

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Mini Company [16]

Mini Company/Team : “Pioneer”President/Team Leader : Tuti SusantiMission : To achieve best delivery and quality on local Packaging

KPI Measure :• LT reduction• Inventory reduction• RM cost reduction• RM ETA Accuracy

Kaizen (improvement initiatives)The Daily meeting held per Mini company team to discuss daily issue and problem solving or in progress kaizen initiatives.

A weekly meeting held with all Purchasing Mini Company with the Manager to escalate unsolved problem on unachieved KPI. Each

mini company also measure the absentism of the team member and build their team capability by arranging the training required

for any of the new team member. This is independently manage by the mini company president with little supervision from their

Manager. The Purchasing Manager here then acting as a coach in building the Constructive leadership’s behaviour on the team leader.

AchievementPurchasing main Hoshin KPI has achieved :

• RM LT reduction

• Highly improve our inventory in stock turn

• RM cost reduction

Pioneer

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What has LEAN Helped Us Achieve

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Question &Answer Session

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